Gold recovers on low level buying; silver falls

Snapping its two-day losing streak, gold prices recovered by Rs 25 to Rs 31,250 per ten grams in the national capital on Thursday following low level buying for the ongoing marriage season amid a firming global trend.

However, silver lost Rs 320 at Rs 47,500 per kg on lack of buying support from industrial units and coin makers.

Traders said low level buying for the ongoing marriage season and a rising trend in the international markets mainly helped gold prices to recover.

Gold in London, which normally sets price trend in the domestic markets, rose by 0.1% to USD 1,313.42 an ounce on speculation the US Federal Reserve may further cut monetary stimulus, raised demand for the metal as a safe haven.

On the domestic front, gold of 99.9 and 99.5 per cent purity recovered by Rs 25 each to Rs 31,250 and Rs 31,050 per ten grams, respectively.

It had lost Rs 225 in last two trading sessions.

Sovereign, however, held steady at Rs 25,500 per piece of eight grams.

On the other hand, silver ready fell by Rs 320 to Rs 47,500 per kg and weekly-based delivery by Rs 410 to Rs 47,210 per kg.

Silver coins continued to be asked around previous levels of Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.